/ 14 February 2006

Commodities drag JSE down

The JSE was a sea of red at noon on Tuesday after lower commodity prices sparked a widespread sell off. Decliners outnumbered advancers on the all share index by more than two to one.

By noon, the all share index weakened 0,77%. Resources retreated 1,16%, with the gold and platinum mining indices dropping 3,36% and 3,04% respectively.

Industrials lost 0,61%, financials fell 0,4% and the banks index was down 1,11%.

The rand was bid at 6,15 per dollar, little changed from when the JSE closed on Monday, while gold was quoted at $539,85 a troy ounce from $549,06/oz at the JSE’s last close.

“The market was a bit stronger this morning, but obviously with commodity prices lower we have seen weakness in resources. This has spread to the rest of the market and there has been a bit of a sell off,” a dealer said.

She added that neither the rand nor world markets were offering the JSE much in the way of direction.

On the resources index, BHP Billiton bounced 34 cents to R100,99 and Anglo American inched up 15 cents to R217,15.

Petrochemicals group Sasol, however, tumbled 2,42% or R5,75 to R231,80.

Gold Fields slid 3,69% or R5,02 to R130,99, Harmony was 3,46% or R3,36 lower at R93,64 and AngloGold Ashanti surrendered 2,87% or R10,20 to R345,80.

AngloPlat slumped 3,68% or R18,01 to R471,99 and Impala weakened 2,85% or R28 to R953.

Swiss-listed luxury goods group Richemont rose 1,05% or 28 cents to R26,90.

Illovo Sugar leaped 3,82% or 55 cents to R14,95. Illovo shares traded as high as R15 after the group said that it had was considering a proposal which may result in an offer to purchase a majority of the shares of the company.

Cement producer PPC picked up R2,98 to R366.

Mittal Steel, however, slipped 2,34% or R1,50 to R62,50.

Brand management group Barloworld plunged 3,27% or R3,99 to R118,01.

Cellular network operator MTN Group gave up 1,77% or R1,10 to R61,20, while Telkom was 1,11% or R1,84 weaker at R163,66.

Retailer Shoprite dropped 3,73% or 75 cents to R19,35.

Shares to firm on the financial index included London-listed Old Mutual, which was 1,58% or 30 cents to R19,30.

Liberty International climbed 1,14% or R1,30 to R115,80 and investment company Remgro rose 1,05% or 28 cents to R119,78.

Liberty Group, however, lost 1,07% or 95 cents to R88,25 and Sanlam was 10 cents softer at R15,70.

FirstRand fell 1,29% or 24 cents to R18,32, Nedbank weakened 1,21% or R1,30 to R105,75, Standard Bank shed 70 cents to R78,30 and Absa was off R1,04 at R107,16. – I-Net Bridge